Aussie to gain in tandem with gold

The Aussie insists on remaining close to the upper band of the ascending channel. As the world markets feel edgy about geopolitical tensions that make investors flee to golf, another rise in the AUD is likely to take place over the coming days or next week. Another factor to take into account is expectations of an at least 25 basis point cut in US federal funds rate later this month as Federal Reserve gathers for its FOMC policy meeting. Given the current circumstances, a return to the upper band at 0.7075 will be followed. Still above we can watch 0.7100 depending on the course gold prices take. 0.7030 can be designated as a stop loss level if the pair moves downward.